Financial repression and fiscal policy

KL Gupta, R Lensink

OnderzoeksoutputAcademicpeer review

2 Citaten (Scopus)


This paper develops a simulation model to assess the consequences of government's trying to raise revenues through financial repression in developing countries. The measures of financial repression studied are (1) government borrowing from the banking sector to finance its budget deficit (2) government borrowing from the banks at lower rates and (3) the government levying a tax on interest income from government bonds. The policies appear to be detrimental to private capital formation, while the effect on government expenditures is repression-measure specific. (C) 1997 Society for Policy Modeling. Published by Elsevier Science Inc.

Originele taal-2English
Pagina's (van-tot)351-373
Aantal pagina's23
TijdschriftJournal of Policy Modeling
Nummer van het tijdschrift4
StatusPublished - aug-1997

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